Markets high, confidence low: American still scraping together savings

Despite the run-up in the markets in recent months, Americans remain very pessimistic about their finances — and a growing number of people now say that they’re unable to put money away for their futures. The number of people who can’t afford to save for the long term jumped five percentage points to 57%, the highest on record, according to a bimonthly survey released today by Rasmussen Reports LLC, an Asbury Park, N.J.-based research firm. Rasmussen conducted the survey for Bloomington, Ill.-based Country Financial. In August, an index of the public mood dropped to 62.8 from 64.6 in June, marking the lowest level since the index began in February 2007, according to Rasmussen. The bimonthly survey polled 3,000 Americans by telephone about their feelings of their own finances. The percentage of Americans who say they are confident they’ll have the resources to send their children to college dropped 11 points from June, to 51%. “Parents have experienced a perfect storm this past year. The recession has crushed many college savings plans, and schools are raising tuition in the wake of state funding cuts,” Keith Brannan, vice president of financial security planning at Country Financial, said in a statement. “Toss in the angst from the job market and it’s easy to see why confidence is sliding.” Meanwhile, the number of Americans who are concerned about their nest egg for retirement is increasing. There was a four-point jump, to 42%, in those who are not confident they will be able to enjoy a comfortable retirement.